Beazley Bets ESG Makes for Better Businesses… and Lowers Risk
Interest in prioritizing responsible Environmental, Social and Governance (ESG) practices has spread across industries as employees, customers and investors alike look to conduct business with organizations whose values match their own. But what if fidelity to ESG principles isn’t only the right thing to do for people and the planet, but actually makes business run better? That’s what perennial specialty insurance innovator Beazley asserts with a new offering targeted at businesses that score high on ESG ratings.
Will Roscoe, Head of Beazley’s Market Facilities Division notes, “Syndicate 4321 is an innovative and tangible way to support those businesses that invest in ESG by offering additional capacity,” Roscoe said. “Evidence demonstrates that businesses with high ESG ratings are likely to have a lower risk profile and we are looking forward to building long-term partnerships with clients that, like us, value doing the right thing.”
Although insurers in North America have been slower to embrace ESG-enhanced underwriting, European counterparts have already begun to incorporate ESG factors into their businesses. In 2019, Zurich Insurance announced it would no longer do business with entities that earn more than 30% of their revenue from oil sands or oil shale. Other insurers have since followed suit and ceased writing new business for coal producers and others with potential outsized deleterious ESG impact.
Although the role of ESG in underwriting remains a work in progress, Beazley’s decision to lead the market comes as no surprise given their history of being at the vanguard not only of industry innovation but on helping advance responsible environmental, social and governance stewardship. The new offering will cover diversified risks, including healthcare, property, marine hull, marine cargo and aviation industries.